Entrepreneurship: Types, Current Trends

15Entrepreneurship: Types, Current Trends And Future PerspectivesINTRODUCTIONMany authors stated that corporate entrepreneurship is growth strategy and theway to gain and sustain competitiveness (Dess et al., 1999; Kuratko, 1993;Merrifield, 1993). There is no unique definition of the corporate entrepreneurship.The corporate entrepreneurship includes organization deversification, new ideas aswell as entreprenership philosophy in the entire organozation (Covin, Miles, 1999).The corporate entrepreneurship focuses on increase of organization ability toabsorb innovation. The role of organizational culture is in acceleration ofinnovation process and affirmation of the entrepreneurship spirit.The empirical validation of corporate entrepreneurship is complex. Therefore,many authors focused their effords toward creation the conceptual models thatwere not empirical tested or implied to a case study analysis. Main contribution ofthis paper is expand existing literature by empirical validation of the corporateentrepreneurship instrument in Serbian public sector. Hornsby et al. (2008) pointedthat for evaluate organization climate and to assess willingness of managers toiniciate change, appropriate methodology may by Corporate EntrepreneurshipAssessing Instrument (CEAI).The main aim of this study is assess organizational factor for introducingchange in Serbian public sector.Research questions:1. Can proposed instrument be used in Serbian public sector?2. Are organizational factors that support entrepreneurial action supportivefor all?The paper is structured as follows. The first section is devoted to theoreticalbackground in relation to the mere concept of corporate entrepreneurship andcorporate entrepreneurship measurement; the second one is devoted to the researchcontext. Third section explains methodology of this study, then we presentedresults and discuss them.THEORETICAL BACKGROUNDAny study of corporate entrepreneurship should be start with definition of theterm (Holt et al., 2007, p. 41). Regarding the fact that the concept of corporateentrepreneurship is relative new in the literature of management science, there is noconsensus about definition or measuring instrument. The authors have identifiedfour types of corporate entrepreneurship: sustainable regeneration, rejuvenation ofthe organization, strategic recovery and strategic turnaround, considering that thereis no precise definition of the term longer that those four categories include mostforms of corporate entrepreneurship in organizations (Dess et al., 2003). Generally,corporate entrepreneurship is the process of rebuilding the organization that hastwo related dimensions - innovation and investment, but also the reconstructionstrategy (Zahra, 1993). A larger number of authors believes that corporateentrepreneurship has the following three components: proactive, innovation and the

Entrepreneurship: Types, Current Trends And Future Perspectives16willingness to take risks (Miller, 1983; Morris, Paul, 1987; Covin, Slevin, 1990;Dean et al., 1993).Corporate entrepreneurship represents the organizational behavior that requiresresources and management support for the development of different types ofinnovations that contribute to the creation of new value (Kuratko et al., 2005, p.700). Although the characterization of specific organizational behavior there is noconsensus, empirical research have convergence in terms of innovation,proactiveness and risk taking, members of the organization (Covin, Slevin, 1989;Zahra et al., 1999).Corporate entrepreneurship involves activities that incorporate innovation,new resources, customers, markets or new combination of resources, consumersand markets (Ireland et al., 2009). Includes efforts to innovate, recovery andinvestment organizations (Zahra, Covin, 1995; Hisrich, Peters, 1998; Sharma,Chrisman, 1999, Mone et al., 1998). Entrepreneurial activity leads to acquiring andretaining competitive advantage regardless of industry and size of the organization(Covin, Miles, 1999; Bhardwaj et al., 2011). It also provides increased profitability,long-term survival, growth and financial stability (Hitt et al., 2001).Entrepreneurial activities include organizational behavior towards the creation,renewal or innovation (Bhardwaj et al., 2011, p. 188). Important role in promotingentrepreneurial behavior has an organizational culture (Hayton, 2005).Dichotomous categorization of organizational culture on entrepreneurial cultureand conservative presented the Miller and Friesen (1982). Entrepreneurial cultureaccelerates individual creativity, risk-taking and organizational learning, and thebasic characteristics of the conservative culture of control, a large number of rulesand risk avoidance (Atuahene-Gima, Ko, 2001; Barr, Glynn, 2004; Miller, Friesen,1982; Quinn, 1988.).The representation of the dimensions of individualism in the organization has amajor impact on corporate entrepreneurship (Morris et al., 1994). Individualismfacilitates the non-conformist thinking that supports creativity, while collectivismsupport cohesion and cooperation necessary for the acceptance of new ideas. Thehigh presence of the dimensions of individualism pointed to the low level ofentrepreneurship while moderate presence indicates the high organizationalentrepreneurship (Morris et al., 1994; Zahra et al., 2004).An analysis of the relevant literature in the field of organizational culture andentrepreneurship has shown the importance of stimulating organizational climateinfluence on the development of the entrepreneurial spirit in organizations (Morriset al., 1994; Zahra et al., 2004; Chandler et al., 2000). Empirically confirmed theimpact of the support of management and reward system to develop anorganizational culture that supports innovation (Chandler et al., 2000).Important role in corporate entrepreneurship has its measuring.At the organization level measurement results can be used as parameters toimprove operations in a given period of time. Based on the monitoring ofperformance of entrepreneurial organization may establish standards within theindustry. The instrument, called the index of entrepreneurial performance (EPI)

17Entrepreneurship: Types, Current Trends And Future Perspectivesdetermining the level and frequency of entrepreneurship in the organization(Morris, 1999). Then Covin and Slevin (1989) created an instrument that theywanted to include entrepreneurial mental schemes focusing on proactive, risktaking and innovation. Chronological later developed ceai (Hornsby et al., 2002).The measurement is focused on individual perceptions of corporateentrepreneurship which is extremely important given that entrepreneurial behaviorare formed by individuals in organizations. Five factors that indicate the existenceof corporate entrepreneurship in the organization are:The management support, which represents the highest level of readiness ofmanagers to facilitate and promote entrepreneurial behavior and includesencouraging ideas and providing resources for entrepreneurial activities. Anorganization's ability to increase entrepreneurial efforts is conditional oncompatibility of managerial experience and their entrepreneurial initiatives.Preliminary testing ceai included the factor structure and internal reliability.Alpha coefficients for the five factors were 0.89; 0.87; 0.75; 0.77 and 0.64. Theonly rock organizational boundaries failed to meet Nunnally (1978) recommendedthe alpha value of at least 0.70.Since the results of the initial tests were promising instrument has been usedby other authors (Adonis 2003; Brizek 2003; Wood 2004; Rhoads 2005; Davis2006). One result is that the factors should be precisely defined (Davis, 2006).RESEARCH CONTEXTWithout activities of the public sector mainly establish and sustain legislative,production of public products and services. Term public enterprise includes publiccompanies which are established by Republic of Serbia, Vojvodina Province orlocal authorities.Company mainly stated-owned is 1,400 in Serbia, that includes companies inrestructuring processes and at some stage in the privatization process.The main characteristics of the public sector in Serbia are low efficiency andhigh cost, compared with quality and quantity of provided services. Key problemsof public sector are:1. High costs of state government related to employees’ salaries and itsparticipation in GDP,2. Establishing state agencies before previous assessment of its need,3. Irrational spending of budget resources through subvention of public companies,4. Unselective pension system,5. Inefficient administration.Level of state spending is 43.49% is Serbia that is closed to developedcountries in European Union (IMF, 2015).Public sector performance is presented in Table 1.

Entrepreneurship: Types, Current Trends And Future ePublic sectorperformanceTable 1: Serbian public sector performance in 20150.750.930.990.760.790.830.760.83Source: Public Sector Efficiency Index in Post‐Transitional European Countriesfor 2015“Currently bad situation in Serbia suggests that is possible to achievesignificant improvements which would amount to decreasing expenses andincreasing the quality of public services. Some recommendations for Serbia are: to reduce bureaucratic obstacles, To reduce corruption.” (Public Efficiency Index, 2015, p. 17).METHODOLOGYThe study sample consisted of 167 top managers and middle level from fourorganizations. Two organizations belong to the State administration, is one of themedia sector and one organization from the banking sector. The selection oforganizations was conditioned willingness of managers to provide the highest levelof entry into the organization in which we conducted our research. In order toobtain a greater response by managers we used insiders. The percentage of returnedquestionnaires varies between organizations and is conditional on the willingnessof managers to participate in the study.We analyzed the following socio-demographic variables of respondents:gender, age, qualifications, work experience and managerial positions. The sampleconsisted of 76.2% females and 23.8% of male respondents. The highestpercentage of respondents, 33.1% belong to the age group of 31-40 years, slightlylower - 30.7% are between 41 and 50 years, followed by the age group 51 yearsand over (24.7%) and the lowest percentage there are less than 30 years (11.4%).More than half of respondents have a university degree (55.8%), while 26.3%have secondary education, 9.7% higher and 7.9% have academic title of Masterand PhD.The highest percentage of respondents - 34.1% have more than 20 years ofservice, followed by 31.7% of respondents have between 11 and 20 years, 20.1%have less than 5 years of work experience, and 14% of respondents were employedfrom 6 to 10 years.The largest number of respondents 94.4% of middle management level, andthe remaining 5.6% higher level of management.

19Entrepreneurship: Types, Current Trends And Future PerspectivesResearch instrument was CEAI consisting of a 48 questions. Respondentswere expected to express their level of agreement on a five-point scale where: 1 strongly disagree, 2 - disagree, 3 - I'm not sure, 4 - agree, 5 - strongly agree. Thesurvey was conducted during the month of May 2015.Five factors that indicate the existence of corporate entrepreneurship in theorganization are:Management Support representing the highest level of readiness of managersto facilitate and promote entrepreneurial behaviour and includes encouraging ideasand providing resources for entrepreneurial activities. An organization's ability toincrease entrepreneurial efforts is conditional on compatibility of managerialexperience and their entrepreneurial initiatives.Work discretion, which includes tolerance of failure, delegation of authorityand responsibility to managers of medium level. It is important that employees arecreative in the execution of their tasks. Participation in decisions that affect thebusiness is perceived as challenging and significant.Rewards/reinforcement, which is the development and use of the rewardsystem based on performance and highlighting significant achievements and praise.Reward systems are the main source of individual motivation.Time availability for the initiation of innovation by individuals and groups, aswell as the structuring their affairs so as to implement short and long term goals ofthe organization. To encourage innovation, it is important to provide employees thetime to devote to solving long-term problems.Organizational boundaries specify the expected results and developingmechanisms for evaluation, selection and implementation of innovations.Corporate entrepreneurship encourage vertical and lateral communication,multidisciplinary work teams, empowerment of supervisors and the creation ofsmall organizational units.We got permission by authors to use CEAI for this study. Table 2. IllustratesCEAI instrument.Table 2: CEAI instrumentStatementsMy organization is quick to useimproved work methods.My organization is quick to useimproved work methods that aredeveloped by workers.In my organization, developing one’sown ideas is encouraged for theimprovement of the corporation.Upper management is aware and veryreceptive to my ideas and suggestions.A promotion usually follows from theI have the freedom to decide what I doon my job.It is basically my own responsibility todecide how my job gets done.I almost always get to decide what I doon my job.I have much autonomy on my job andam left on my own to do my own work.I seldom have to follow the same work

Entrepreneurship: Types, Current Trends And Future Perspectivesdevelopment of new and innovativeideas.Those employees who come up withinnovative ideas on their own oftenreceive management encouragement fortheir activities.The ‘‘doers on projects’’ are allowed tomake decisions without going throughelaborate justification and approvalprocedures.Senior managers encourage innovatorsto bend rules and rigid procedures inorder to keep promising ideas on track.Many top managers have been knownfor their experience with the innovationprocess.Money is often available to get newproject ideas off the groundIndividuals with successful innovativeprojects receive additional rewards andcompensation beyond the standardreward system for their ideas andefforts.There are several options within theorganization for individuals to getfinancial support for their innovativeprojects and ideas.People are often encouraged to takecalculated risks with ideas around here.Individual risk takers are often recognizedfor their willingness to champion newprojects, whether eventually successful ornot.The term ‘‘risk taker’’ is considered apositive attribute for people in my workarea.This organization supports many smalland experimental projects, realizing thatsome will undoubtedly fail.An employee with a good idea is oftengiven free time to develop that idea.There is considerable desire amongpeople in the organization forgenerating new ideas without regard.People are encouraged to talk to20methods or steps for doing my majortasks from day to day.The rewards I receive are dependentupon my innovation on the job.My supervisor will increase my jobresponsibilities if I am performing wellin my job.My supervisor will give me specialrecognition if my work performance isespecially good.My manager would tell his/her boss ifmy work was outstanding.There is a lot of challenge in my job.During the past three months, myworkload kept me from spending timeon developing new ideas.I always seem to have plenty of time toget everything done.I have just the right amount of time andworkload to do everything well.My job is structured so that I have verylittle time to think about widerorganizational problems.I feel that I am always working withtime constraints on my job.My co-workers and I always find timefor long-term problem solving.In the past three months, I have alwaysfollowed standard operating proceduresor practices to do my major tasks.There are many written rules and

Entrepreneurship: Types, Current Trends And Future Perspectives21employees in other departments of thisprocedures that exist for doing myorganization about ideas for newmajor tasks.projects.I feel that I am my own boss and do not On my job I have no doubt of what ishave to double check all of myexpected of me.decisions with someone else.Harsh criticism and punishment resultThere is little uncertainty in my job.from mistakes made on the job.This organization provides the chance to During the past year, my immediatebe creative and try my own methods ofsupervisor discussed my workdoing the job.performance with me frequently.This organization provides the freedom to use my own judgment.This organization provides the chance to do something that makes use of myabilities.Source: Kuratko, Hornsby & Covin (2014), pp. 40-41.Data were analyzed using the statistical package SPSS 19.0. Data analysisincluded frequency analysis, t-test and factor analysis.RESULTS AND DISCUSSIONFrequency analysis of the four public organizations is presented in Table 3.Table 3: Frequency analysisOrganizationOrg. 1Org. 2Org. 3Org. 4TotalFrequency25434851167Valid Percent15,025,728,730,5100,0Cumulative Percent15,040,769,5100,0Source: Authors' calculationAnalysis of the attitudes of the respondents of different socio-demographicvariables shows that there is a different perception of the internal factors ofcorporate entrepreneurship (see Table 4). Statistically significant differences wereidentified within a factor of rewarding by the respondents assess much moreimportant for the development of entrepreneurial organizational culture but malerespondents (see Table 4).

Entrepreneurship: Types, Current Trends And Future Perspectives22Table 4: Independent sample testVariabletdfSig.Mean Diff.Rewards-2,881490,00-2,45Std. Err.Diff.0,85Source: Authors' calculationRespondents who belong to the age group of 41 to 50 years were significantlymore organizational boundaries to assess the significance of the respondents fromother age groups (see Table 5).With regard to education, the respondents who have a college degree considerthe awards are important for the development and implementation of new ideasthan other

forms of corporate entrepreneurship in organizations (Dess et al., 2003). Generally, corporate entrepreneurship is the process of rebuilding the organization that has two related dimensions - innovation and investment, but also the reconstruction strategy (Zahra, 1993). A larger number of authors believes that corporate entrepreneurship has the .